IRS Suspends Tax Refunds and Tax Court Closes during Government Shutdown

The Internal Revenue Service has temporarily stopped sending out tax  refunds, and the Tax Court has suspended operations during the federal  government shutdown, as lawmakers in Congress continue their battle over delaying or defunding “Obamacare” for a year.

“Tax refunds will not be issued until normal government operations resume,” said the IRS. The IRS emphasized, however, that the underlying  tax law remains in effect, and all taxpayers should continue to meet  their tax obligations as normal.

“Individuals and businesses should keep filing their tax returns and making deposits with the IRS, as they are required to do so by law,”  said the IRS. “The IRS will accept and process all tax returns with  payments, but will be unable to issue refunds during this time.  Taxpayers are urged to file electronically, because most of these  returns will be processed automatically.”

In addition, the IRS  noted that no live telephone customer service assistance will be  available. However, most automated toll-free telephone applications will remain in operation. IRS walk-in taxpayer assistance centers will be  closed, though.

While federal government offices are closed,  people who have appointments with the IRS related to examinations and  audits, as well as tax collection, appeals or Taxpayer Advocate cases  should assume their meetings are canceled, the IRS noted. IRS personnel  will reschedule the meetings at a later date once
the government  shutdown ends.

In addition, IRS computer systems will continue to  mail out automated notices to taxpayers, but IRS employees will not be  sending any paper correspondence during the period when the federal  government is shut down. The IRS provided some basic steps to follow  during this period:

• Continue to file and pay taxes as normal.  Individuals who have requested an extension of time to file should file  their returns by Oct. 15, 2013.

• All other tax deadlines remain  in effect, including those covering individuals, corporations,  partnerships and employers. The regular payroll tax deadlines remain in  effect as well.

• Taxpayers can file their tax returns  electronically or on paper—although the processing of paper returns will be delayed until full government operations resume. Payments  accompanying paper tax returns will still be accepted as the IRS  receives them.

• Tax refunds will not be issued until normal government operations resume.

• Tax software companies, tax practitioners and Free File will remain available to assist with taxes.

A number of IRS services will remain available, but in a limited way. For taxpayers and preparers seeking assistance, only the automated  applications on the regular (800) 829-1040 telephone line will remain  open.